Erection All Risk (EAR)

Erection All Risk policy protects principal, contractors, manufacturers and suppliers erecting plant and machinery etc. against the financial loss due to sudden fortuitous and unforeseen events resulting in loss or damage to the property insured at the project site whilst being stored, erected, tested and commissioned.

Coverage:

1. Covers risks associated with storage, assembly/ erection and testing of Plant and Machinery
2. All perils are covered unless specifically excluded
3. Cover commences from the date of arrival of first consignment at site
4. In the event of non- completion of the project within the period as per policy, cover may be extended for such further time as may be required at additional premium

Add-On Coverage:

1. Owner’s Surrounding Property
2. Removal of Debris
3. Additional Customs Duty
4. Air Freight
5. Express Freight, Overtime charge etc.
6. Contractors’ Plant & Machinery
7. Third Party Liability
8. Escalation etc

Exclusions:

1. Excess in respect of each claim as stipulated
2. Inventory Losses, Normal Wear & Tear and gradual deterioration due to atmospheric condition or otherwise, rust, scratching of painted or polished surface or breakage of glass
3. Loss or damage due to faulty design, defective material or casting
4. War and warlike operation
5. Nuclear reaction, nuclear radiation or radioactive contamination
6. Wilful act or negligence of Insured
7. Consequential losses of any kind or description such as losses due to penalty, delay, lack of performance, loss of contract